United Utilities saw a 5 per cent drop in revenues over the six months to the end of September owing to reduced water consumption by businesses during the coronavirus lockdown, the water company has revealed in a trading update.
It said the decrease was only partially offset by an increase in domestic water consumption from customers working from home.
In an update issued ahead of its half-year results in November, United Utilities (UU) said that underlying operating profit is also expected to be lower than in the same period last year, reflecting the reduced revenue and a moderate increase in infrastructure renewals expenditure.
Revenue from household customers has remained in line with targets. However, the company expects bad debt will increase when governmental support schemes end. Early in the pandemic UU extended its social tariffs to help billpayers financially affected by the situation.
UU said net finance expenses are expected to be around £30 million lower year-on-year due to a lower inflation rate.
Despite the ongoing pandemic, the company said it is on track with its AMP7 plan and has accelerated its capital expenditure programme compared to the assumed profile in the final determination.
United Utilities was recognised as a sustainability leader within the EcoAct FTSE100 report released this week that ranked it 11th within the UK for its sustainability strategy and performance.